The government spending review is not a short term fix but a long-term restructuring of the nation's economy, according to a senior Conservative MP.
Jonathan Evans MP, chairman of the All Party Parliamentary Insurance and Financial Services Group also hinted that the measures are likely to see greater involvement for the private and voluntary sector in delivering public services.
Speaking to COVER prior to Chancellor George Osborne's statement, Evans said: "What's now taking place is not a four year short term fix.
"This is going to be the new structure of our economy in which we're still going to have a considerable government contribution to the delivery of services, but there are many other people who are going to have to step up to the plate and make a contribution."
The Conservative MP for Cardiff North backed the insurance industry to supply some of these services and further explained his belief that the government is set to redistribute some of its public sector funding.
"The funding which has been made available for public services in the past may well be shared more equitably with sectors other than the public sector," he said.
"There's a hope that it will be able to draw in voluntary sector and other groups including, I would argue, the private sector and insurance industry to get better value from what the government contributes."
